Butyl Glycol Prices Trend in the second quarter of 2023 | ChemAnalyst

For the Quarter Ending June 2023

North America:

In the United States, the Butyl Glycol market experienced a decline in demand due to weak market fundamentals and increased product inventory within major production units. Trading of Butyl Glycol from the US decreased as a result of limited inventory utilization and unfavorable trading conditions. Producers responded to the weakened trading fundamentals by lowering their offers in order to reduce inventory levels. The demand for Butyl Glycol from downstream industries such as paint and coatings also decreased due to inadequate cost support from end-user sectors. This led to a decline in Butyl Glycol demand within the US market, causing trades to occur at reduced prices. Despite a surplus of feedstock in the region and reduced market trading activities, prices were prevented from rising further. The market in the region faced challenges this quarter, including sluggish end-product sales and ongoing cash flow issues, which further impacted overall market dynamics. The diminishing demand for industrial, commercial, and household cleaning products contributed to the downward price trajectory of Butyl Glycol.

Asia Pacific:

During this quarter, the price of Butyl Glycol in the Asia Pacific region declined due to lower prices of its upstream components, n-Butanol, and Ethylene Oxide. The demand from downstream industries, both domestically and in Asian markets, dwindled, leading to a decrease in prices. The market sentiment was bearish, influenced by a slight drop in feedstock Ethylene oxide prices within the region. Major enterprises reduced their production rates to avoid stockpiling. Downstream businesses also navigated weak market fundamentals, which impacted the market negatively. In South Korea, the average production rate of Butyl Glycol ended on a weaker note due to sufficient supply. In terms of trading dynamics, the export market in the Southeast Asian region was affected by an ample supply of Butyl Glycol. By June 2023, the price of Butyl Glycol had decreased to USD 1470/ton FOB Busan. Factors such as declining freight rates, accumulating stocks at ports, and lower netbacks in the Southeast Asian market contributed to the prevailing weak market fundamentals. Suppliers, faced with surplus supply, offered discounts on bulk purchases to clear their inventories.

Butyl Glycol Prices: https://www.chemanalyst.com/Pricing-data/butyl-glycol-1444

MEA:

The Saudi Arabian market saw an excess supply of Butyl Glycol, resulting in subdued trading activities and a shift in the pricing trend among suppliers. Bids and premium offers for Butyl Glycol continued to decrease, with slow market offtakes contributing to deterred market fundamentals. The impact of sluggish global economic growth and concerns over potential interest rate hikes by global banks played a significant role in weakening trading conditions. Suppliers and distributors of Butyl Glycol struggled to find buyers in downstream solvent and paint industries due to lackluster end-user purchasing interest and narrowing profit margins. This quarter, Butyl Glycol prices in the Middle Eastern market experienced a decline with limited purchasing activity. In June 2023, the price of Butyl Glycol in Saudi Arabia dropped to USD 1030/ton FOB in Jeddah. Reduced demand from downstream paint and coating industries, coupled with decreased consumer spending, resulted in decreased commerce and subsequently impacted Butyl Glycol demand. Notably, significant manufacturing units offered discounts on bulk purchases due to limited product consumption.

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